Summary
Social Security payments will increase by 2.8% starting in 2026, which means retirees will get about $56 more every month. This cost-of-living adjustment will affect nearly 71 million people receiving Social Security and 7.5 million receiving Supplemental Security Income. The increase is to help benefits keep up with economic changes, but Social Security faces financial challenges in the future.
Key Facts
- Social Security payments will increase by 2.8% in 2026.
- Retirees will get an average of $56 more each month from this increase.
- The change affects 71 million Social Security recipients starting in January 2026.
- Supplemental Security Income payments for 7.5 million people will rise on December 31.
- The increase is funded by payroll taxes, which will cover wages up to $184,500 in 2026.
- In past years, the cost-of-living adjustments were 2.5% in 2025 and 3.2% in 2024.
- Social Security's trust funds could run out by 2034, leading to reduced benefits.
- There's no current plan to raise the retirement age, despite ongoing discussions.
